Starting Up Own Business Explanation

¶ … Starting Up Own Business Explanation of Problem Location of Resources Evaluation of Resources Mindmap INFORMATION SKILLS SCENARIO: STARTING UP OWN Business The focus of this work is to examine the necessary steps in the process of beginning ones' own business. This initiative requires identification of keywords in the form of a mindmap which will enable the process of organizing the implementation of this business.

Explanation of Problem The writer of this work has previously been employed by others and has set out to start a new business which will result in the individual being self-employed. This is a radical change from the previous employment of the individual. Location of Resources Resources for this initiative has been located online through use of the Google Search Engine and using the keywords and key phrases listed as follows: (1) self-employment; (2) business owner considerations; (3) How to start a business.

Evaluation of Resources According to Business Week Magazine in the article entitled: "A Guide to Self-Employment" written by author John Tozzi in January 2009, one of the primary concerns of those who own their own businesses or who are self-employed is that of 'health care' as the "health insurance system does not accommodate independent workers well." If the individual is married then they could be eligible for coverage through their spouse's health insurance plan and others may be eligible for group health insurance through groups such as "New York-based 'Freelancers Union', which launched a health insurance company last year offering plans in 31 states." (Tozzi, 2009) Tozzi additionally states that the business owner or self-employed must consider such as paying taxes, landing clients and establishing a schedule that enables their best work.

The work entitled: "10 Steps to Starting a Business" published by the Business.GOV website lists the following ten steps in starting a business: (1) Research and plan the business; (2) get business assistance and training; (3) choose a business location; (4) finance the business; (5) determine the legal structure of the business; (6) register a business name; (7) get a tax identification number; (8) register for state and local business licenses and permits; (9) Obtain business licenses and permits; and (10) Learn employer legal responsibilities.

(Business.GOV, 2009) An important aspect of starting a business is the creation of the 'Business Plan'.

The Business Plan is "a written description of your business's future...a document that describes what you plan to do and how you plan to do it." (Entrepreneur, 2009) a business plan "conveys your business goals, the strategies that you'll use to meet them, potential problems that may confront your business and ways to solve them, the organizational structure of your business (including titles and responsibilities) and finally, the amount of capital required to finance your venture and keep it going until it breaks even." (Entrepreneur, 2009) There are seven components to a business plan as follows: (1) Executive summary; (2) Business description; (3) Market strategies; (4) Competitive analysis; (5) Design and development plan; (6) Operations and management plan; and (7) Financial factors.

(Entrepreneur, 2009) It is important that the individual who starts their own business determine their objectives for the business and toward this end a goals and objectives checklist should be formulated asking questions such as: (1) How determined am I to see this succeed? (2) Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years? (3) What's going to happen to me if this venture doesn't work out? (4) if it does succeed, how many employees will this company eventually have? (5) What will be its annual revenues in a year? Five years? (6) What will be its market share in that time frame? (7) Will it be a niche marketer, or will it sell a broad spectrum of good and services? (8) What are my plans for geographic expansion? Local? National? Global? (9) Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others? (10) if I delegate, what sorts.